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Congressional Research Service 
 
˜
 
The Library of Congress 
CRS Report for Congress
Received through the CRS Web
Order Code RL33696
Conventional Arms Transfers toDeveloping Nations, 1998-2005
October 23, 2006
Richard F. GrimmettSpecialist in National DefenseForeign Affairs, Defense, and Trade Division
 
Conventional Arms Transfers to Developing Nations,1998-2005
Summary
This report is prepared annually to provide Congress with official, unclassified,quantitative data on conventional arms transfers to developing nations by the UnitedStates and foreign countries for the preceding eight calendar years for use in itsvarious policy oversight functions. All agreement and delivery data in this report forthe United States are government-to-government (FMS) transactions. Some generaldata are provided on worldwide conventional arms transfers by all suppliers, but theprincipal focus is the level of arms transfers by major weapons suppliers to nationsin the developing world.Developing nations continue to be the primary focus of foreign arms salesactivity by weapons suppliers. During the years 1998-2005, the value of armstransfer agreements with developing nations comprised 66.8% of all such agreementsworldwide. More recently, arms transfer agreements with developing nationsconstituted 64.3% of all such agreements globally from 2002-2005, and 68.4% of these agreements in 2005.The value of all arms transfer
agreements
with developing nations in 2005 wasnearly $30.2 billion. This was a notable increase over 2004, and the highest total,in real terms, for the entire period from 1998-2005. In 2005, the value of all arms
deliveries
to developing nations was $17.7 billion, the lowest total in these deliveriesvalues for the entire 1998-2005 period (in constant 2005 dollars).Recently, from 2002-2005, the United States and Russia have dominated thearms market in the developing world, with the United States ranking first for 3 outof 4 years in the value of arms transfer
agreements
, with Russia ranking second for3 out of these same four years. From 2002-2005, the United States made $33.3billion in arms transfer agreements with developing nations, in
constant 
2005 dollars,35.2% of all such agreements. Russia, the second leading supplier during this period,made $21.8 billion in arms transfer agreements, or 24.3%. Collectively, the UnitedStates and Russia made nearly 60% of all arms transfer agreements with developingnations during this four year period.In 2005, Russia ranked first in arms transfer
agreements
with developingnations with $7 billion or 23.2% of these agreements. France was second with $6.3billion or 20.9% of such agreements. The United States was third with $6.2 billionor 20.5%. In 2005, the United States ranked first in the value of arms
deliveries
todeveloping nations at $8.1 billion, or 45.8% of all such deliveries. Russia rankedsecond at $2.7 billion or 15.2% of such deliveries. The United Kingdom rankedthird at $2.4 billion or 13.6% of such deliveries.In 2005, India ranked first in the value of arms transfer
agreements
among alldeveloping nations weapons purchasers, concluding $5.4 billion in such agreements.Saudi Arabia ranked second with $3.4 billion in such agreements. China ranked thirdwith $2.8 billion.
 
Contents
Introduction and Overview..........................................1Major Findings....................................................4General Trends in Arms Transfers Worldwide.......................4General Trends in Arms Transfers to Developing Nations..............6United States.............................................8Russia...................................................8China..................................................11Major West European Suppliers.............................12Regional Arms Transfer Agreements..............................14Near East...............................................15Asia...................................................16Leading Developing Nations Arms Purchasers......................16Weapons Types Recently Delivered to Near East Nations.............17United States............................................18Russia..................................................18China..................................................18Major West European Suppliers.............................18All Other European Suppliers...............................18All Other Suppliers.......................................19Summary of Data Trends, 1998-2005.................................21Total Developing Nations Arms Transfer Agreement Values...............21Regional Arms Transfer Agreements, 1998-2005........................27Near East...............................................27Asia...................................................29Latin America...........................................32Africa..................................................32Arms Transfer Agreements With Developing Nations,1998-2005: Leading Suppliers Compared......................33Arms Transfer Agreements With Developing Nations in 2005:Leading Suppliers Compared...............................33Arms Transfer Agreements With Near East 1998-2005:Suppliers And Recipients..................................34Arms Transfers to Developing Nations, 1998-2005:Agreements With Leading Recipients.........................35
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